Fed Fears Call the Tune

Bond and precious-metals ETFs were clobbered in the first half on rising-rate concerns, although finance-based funds did well. Biotech, anyone?

Recent trading in exchange-traded funds reflects just about all the market trends apparent at 2013's halfway point, including many that trace directly to investors' worries about a stingier Federal Reserve. Fears about higher interest rates have hammered bond ETFs and sunk precious-metals funds. But there have been winners, too; financial ETFs are bounding higher as bond yields rise.

It's no accident, for instance, that iShares Dow Jones U.S. Broker-Dealers (ticker: IAI), which tracks companies such as Goldman Sachs Group...